Don't panic... AI boom not about to bust

FEARS that the current AI boom is heading for a spectacular bust have been quashed.

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US Federal Reserve chair Jerome Powell poured cold water on concerns, arguing that the current surge in investment bears little resemblance to the decades ago dotcom frenzy.

Powell said today's AI leaders are not riding a speculation wave, but building real, profitable businesses, and in doing so, powering a crucial leg of economic growth.

"This is different in the sense that these companies actually have earnings," he said. "If you go back to dotcom, these were ideas not companies. There was a clear bubble there."